4 Unit Advice

[Ricky Raleigh]

Hello, I am a newer investor and my wife at I our looking at our first 4 unit home. Its a 4 unit in a nice area, listed at $225,000, doesn't need any work and is fully rented at $3,200/mo.

Details:

Taxes: $4,250

Insurance: $2,400

Maintenance: $300/mo

Vacancy: $330/mo

LL utilities: $75/mo

Monthly expenses: $1,260

Financing 100% through personal loan & mortgage: $1,350

Monthly NOI including financing is $590

Thoughts on this deal? Am I missing anything?

Thanks for any help or input!

[Sharon Tzib]

I don't see any management fees. Even if your wife and you will be doing it yourself, you should never buy an investment property without calculating in PM fees, in case you get ill, have to move, or just decide you hate doing it. Deduct another 10%.

Also, have you verified the LL utilities by looking at a 12-month bill history? Utilities of any kind can kill your bottom line. Trust but verify what the seller is telling you on those.